Supreme Court’s Big Decision Brings Relief To Delhi-NCR Homebuyers Under Subvention Scheme

In a significant development, the Supreme Court has intervened to protect the interests of home buyers who have invested in housing projects under the subvention scheme across Delhi-NCR, including Noida. The court’s directive comes amidst grievances over delayed possession of flats by developers and subsequent actions by financial institutions. Under the subvention scheme, banks directly transfer approved loan amounts to builders, with home buyers commencing EMI payments only after taking possession of their properties. However, due to delays and defaults by developers on bank EMIs, financial institutions resorted to coercive measures against home buyers under the triple agreement, leading to widespread discontent.

The apex court’s bench comprising Justice Surya Kant and Justice Ujjal Bhuyan issued a crucial order prohibiting banks and builders from taking arbitrary actions such as EMI recovery or pursuing complaints related to cheque bounce against home buyers. This decision overturns previous rulings and provides relief to aggrieved buyers who had exhausted legal remedies at lower courts without success.

Explaining the rationale behind the ruling, the bench emphasised that until the matter is resolved, no punitive measures can be taken against home buyers, ensuring their protection from undue harassment by financial entities. This move is expected to bring respite to thousands of home buyers grappling with prolonged delays in possession and financial uncertainties.

The Supreme Court’s intervention underscores its commitment to safeguarding consumer rights in the real estate sector and sets a precedent for fair treatment of home buyers facing similar challenges nationwide.

About the Subvention Scheme:

The subvention scheme enables home buyers to defer EMI payments until possession of the property, with banks transferring loan amounts directly to builders upon approval. This landmark decision by the Supreme Court marks a significant step towards addressing the systemic issues affecting the real estate sector and upholding the rights of home buyers across the country.